SALEM - An apparent breakdown in communication with First Baptist Church has forced the state to make dramatic changes to its proposed $106 million court complex on Federal Street.

Unable to reach a deal, or even to get a response to its reported $1.2 million purchase offer, the state is planning to build around the church by erecting a taller building at the corner of North, Federal and Bridge streets, according to several officials involved in the talks.

The original plan announced last year by Lt. Gov. Kerry Healey called for the new courthouse not only to be on church land, but to include part of the historic church building. It appears that plan is being ripped up and replaced by a new one that has been an option all along, although not a preferred one.

"We're all working toward a plan which assumes the church is not offered for sale and is not part of the plan," said Kevin Flanagan, a spokesman for the state Division of Capital Asset Management, which oversees state construction. "So we're basically designing around it."

The state grew concerned when it did not hear from the church by a mid-May deadline, local officials said. The church also missed a deadline last winter to submit a sale price to the state. Officials said they are puzzled by the church's silence.

"It's not clear to me whether the church is playing hardball or they're just kind of dysfunctional in terms of making this decision," said Senate Majority Leader Fred Berry of Peabody.

"There has been a failure to communicate," said state Rep. John Keenan of Salem, who has tried to be a liaison between the state and Federal Street property owners. "It's been a little frustrating."

Berry hosted a meeting last week with DCAM Commissioner David Perini, Salem Mayor Kim Driscoll and Keenan. Late yesterday, a DCAM representative came to Salem to sit down for a second time with the mayor and Keenan.

While disappointed and initially concerned, local officials insist court construction is still on course.

"This project is not in trouble," Keenan said.

"I think the good news is the project can proceed," Driscoll said after yesterday's meeting. "... It's too important to be held up by one property. This project needs to go forward."

"The fact they will look at alternatives I think shows a deeper commitment," Berry said.

Berry said he believes the state has made a fair offer to the church, which is reportedly around $1.2 million. In addition, the state has offered to pay to relocate the church organ and stained-glass windows, Keenan said.

"It's like twice the money they were looking for five years ago," Berry said. "It sounds fair to me, but I'm not a real estate expert." The church, which has a small membership, was for sale a few years ago but later taken off the market.
The Salem News was not able to reach a church representative despite repeated attempts.

Taking the church property by eminent domain does not appear to be an option. The state is concerned about escalating construction costs, Keenan said, and is not interested in a long legal proceeding.

While the state once talked of starting construction this year, it is now eyeing 2007. Work is expected to take five to six years to complete.

The new J. Michael Ruane court complex would include a superior court, a district court, a juvenile court, a housing court and 16 courtrooms.

"We needed to proceed," Driscoll said, "and I think we now have a direction we have to go knowing the church has been nonresponsive."